Not sure what affect his will have on NLST, but it looks like NLST will be added to the Russell Microcap Index. I believe, that index funds are required to re-balance their portfolio within a certain period of time.
Can anyone confirm this?
Yes internet data doesn`t necessarily mean more memory,it means faster and wider broadband and more storage and processing power.
Internet search requires online memory (as in GOOG Caffeine project which MAY be using the NLST IP-impacted servers ?).
Move to multi-core CPUs means there is a "memory bottleneck" as CPUs have gotten much faster but not enough memory per server
Regarding the impact of the economy on the data center/cloud computing buildout - as many have said that that upgrade is overdue (as companies not invested for last few years because of economy now overdue for upgrade).
But adding to that is a comment that saw in an article (maybe posted here) that regardless of economy, the use of data continues apace - i.e. GOOG search, mobile phones being internet connected/location-aware and so on. The point being that the use of data/internet will increase over time (and perhaps exponentially so with hugely more data-enabled mobile phones arriving into market - iPhone and the competing Android operating system phones both heavily linked to internet/marketplace for apps and for location-aware/GPS broadcast, plus twitter and facebook apps for real-time messaging over internet - GPRS/EDGE/3G).
#$%$** Repeating what I wrote in another post #$%$#$%$**
All the index funds and regular ETF's (not the leveraged ETF's) tracking the Russell Microcap/3000 have to actually buy the actual NLST shares. I do not know how many index funds and ETF's are out there tracking the Russell Microcap or the Russell 3000 (but I am sure we can easily figure this out).
To give some sense of this, the IShares Russell Microcap ETF (IWC) has net assets of around $340 Million. I think NLST will be around 0.08% of the fund. That would be $272,000. At the current price of $2.72, that would be around 100,000 shares.
Now you add up all the various Vanguard, Blackrock, DFA and other index funds and ETF's tracking the Microcap and 3000 and we are now talking probably at least 1 Million shares. That is about 7% of the 15 Million share float.
Bump! This news is getting obscured by all bashers. Bashers are out in full force. I have a feeling we will see $5 by Friday.
Look at Vonage. It went up to $2.40 today on the news that it was added to Russell.
Based on your logic (and I agree with your logic) INTT is a screaming buy. It is also being added to Russell Microcap Index and given how thin it trades and small float...it can ROCKET TO THE MOON.
Excerpt taken from Page 2, 5th paragraph of Russell U.S. Equity Indexes Construction and Methodology
Reconstitution occurs on the last Friday in June. However, at times this date precedes a long U.S. holiday
weekend, when liquidity is low. In order to ensure proper liquidity in the markets, when the last Friday in June
is the 28th, 29th or 30th, reconstitution will occur on the preceding Friday.